Duolingo (NASDAQ:DUOL) Shares Gap Up Following Analyst Upgrade

Key Points

• Duolingo shares surged, opening at $160 after a prior close of $128 and later trading near $168.72, following analyst target increases.
• Wedbush raised its price target to $155 but maintained a neutral rating; Needham lifted its target to $165 and rated the stock a buy. Overall, analysts’ consensus remained “Hold,” with a $134.44 average target.
• Third-quarter revenue of $309 million beat expectations of about $303 million and rose 13.7% year over year, but EPS of $0.54 missed the $0.57 estimate. The company also reported accelerated user growth and raised its outlook.

Duolingo, Inc. (NASDAQ:DUOL - Get Free Report)'s share price gapped up prior to trading on Wednesday after Wedbush raised their price target on the stock from $150.00 to $155.00. The stock had previously closed at $128.00, but opened at $160.00. Wedbush currently has a neutral rating on the stock. Duolingo shares last traded at $168.7190, with a volume of 1,046,476 shares traded.

A number of other research analysts also recently issued reports on the stock. Needham & Company LLC raised their price target on shares of Duolingo from $145.00 to $165.00 and gave the stock a "buy" rating in a research report on Wednesday. Citigroup reaffirmed a "market perform" rating on shares of Duolingo in a research report on Wednesday. UBS Group increased their price objective on shares of Duolingo from $125.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Truist Financial raised their target price on shares of Duolingo from $100.00 to $120.00 and gave the stock a "hold" rating in a report on Thursday, August 6th. Finally, Barclays lifted their target price on Duolingo from $110.00 to $115.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Eight equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Duolingo presently has a consensus rating of "Hold" and a consensus price target of $134.44.

Insider Activity

In other Duolingo news, insider Natalie Glance sold 2,751 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $355,236.63. Following the sale, the insider owned 170,650 shares in the company, valued at approximately $22,036,034.50. This trade represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Meese sold 1,354 shares of Duolingo stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $129.13, for a total value of $174,842.02. Following the sale, the insider directly owned 169,391 shares in the company, valued at approximately $21,873,459.83. This trade represents a 0.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 250,740 shares of company stock worth $37,685,893 over the last three months. Insiders own 16.62% of the company's stock.

Key Duolingo News

Here are the key news stories impacting Duolingo this week:

• Positive Sentiment: Duolingo reported Q3 revenue of $309 million, above analyst expectations of $303 million, and said daily active user growth accelerated to 29% year over year. It also raised its outlook, including projected Q4 bookings growth of 13%; these growth and guidance signals are driving optimism. Duolingo Reports Third Quarter 2026 Results
• Positive Sentiment: Needham raised its price target to $165, a positive analyst signal that may reinforce confidence in the company’s growth prospects. Needham Raises Price Target
• Neutral Sentiment: Wells Fargo upgraded DUOL from “underweight” to “equal weight” and raised its target to $120. The rating change is an improvement, but the target is below the cited $128 share price. Wells Fargo Rating Information
• Negative Sentiment: Q3 EPS of $0.54 fell short of analyst estimates, a potential concern despite the revenue beat. Multiple law firms also publicized an existing securities class action concerning investors who bought shares between May 2, 2025, and February 26, 2026. The litigation could weigh on sentiment, though the announcements largely repeat the same case. Class Action Notice

Institutional Trading of Duolingo

Several hedge funds have recently added to or reduced their stakes in the business. Childress Capital Advisors LLC lifted its holdings in shares of Duolingo by 5.3% in the third quarter. Childress Capital Advisors LLC now owns 1,925 shares of the company's stock valued at $274,000 after buying an additional 97 shares during the period. Versant Capital Management Inc boosted its stake in Duolingo by 73.4% during the third quarter. Versant Capital Management Inc now owns 267 shares of the company's stock valued at $38,000 after buying an additional 113 shares in the last quarter. Root Financial Partners LLC grew its holdings in Duolingo by 194.1% during the first quarter. Root Financial Partners LLC now owns 250 shares of the company's stock worth $25,000 after acquiring an additional 165 shares during the period. Heritage Family Offices LLP acquired a new position in Duolingo during the third quarter worth about $27,000. Finally, Rathbones Group PLC grew its holdings in Duolingo by 2.9% during the first quarter. Rathbones Group PLC now owns 7,460 shares of the company's stock worth $735,000 after acquiring an additional 211 shares during the period. Institutional investors own 91.59% of the company's stock.

Duolingo Trading Up 35.9%

The company has a quick ratio of 2.72, a current ratio of 2.72 and a debt-to-equity ratio of 0.06. The firm's 50-day simple moving average is $144.65 and its 200 day simple moving average is $124.10. The stock has a market capitalization of $8.14 billion, a P/E ratio of 20.67, a PEG ratio of 1.11 and a beta of 1.08.

Duolingo (NASDAQ:DUOL - Get Free Report) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $0.54 earnings per share for the quarter, missing analysts' consensus estimates of $0.57 by ($0.03). Duolingo had a net margin of 35.88% and a return on equity of 12.10%. The business had revenue of $309.01 million during the quarter, compared to analyst estimates of $303.20 million. During the same period in the previous year, the company posted $5.95 earnings per share. Duolingo's revenue was up 13.7% compared to the same quarter last year. Equities research analysts anticipate that Duolingo, Inc. will post 2.62 EPS for the current fiscal year.

About Duolingo

Duolingo, Inc develops technology-based learning products designed to make education accessible and engaging. Its flagship Duolingo mobile and web platform offers gamified courses in languages including Spanish, English, French, German and Japanese, among others. Lessons incorporate interactive exercises, personalized practice and achievement-based features intended to support regular learning.

The company also operates the Duolingo English Test, an online English-proficiency assessment that can be taken remotely and is accepted by educational institutions and other organizations.

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